Michigan's 4.25% flat income tax uses a $5,900 personal exemption — not the federal standard deduction. See exactly what you take home after federal tax, state tax, Social Security, and Medicare.
Unlike most states, Michigan does not have a standard deduction. Instead, each filer claims a personal exemption of $5,900 (single) or $11,800 (married filing jointly), with $5,900 per dependent. Because this exemption is much smaller than the federal standard deduction ($16,100 single), your Michigan taxable income is higher than your federal taxable income. Michigan briefly lowered its rate to 4.05% for tax year 2023 due to a revenue trigger, but it returned to 4.25% in 2024 and remains there for 2026. Detroit and 24 other Michigan cities add a separate local income tax — not modeled here.
Estimates only. MI flat rate: 4.25%. Personal exemption: $5,900 single / $11,800 married / $5,900 HOH (additional $5,900 per dependent not modeled). Detroit/city income taxes not included. Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Michigan State Tax (4.25%) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Michigan has a flat 4.25% state income tax rate for 2026. The flat rate applies to all income levels equally — Michigan has no income tax brackets. Michigan briefly reduced its rate to 4.05% for tax year 2023 only, when a revenue trigger in state law was met. The rate reverted to 4.25% starting with tax year 2024 and remains at 4.25% for 2026. Source: Tax Foundation State Income Tax Rates 2026.
Four taxes come out of a standard Michigan paycheck: federal income tax (progressive brackets based on your W-4), Michigan state income tax (4.25% flat), Social Security (6.2% up to $184,500), and Medicare (1.45% on all wages). If you live or work in Detroit, an additional city income tax applies — 2.4% for Detroit residents and 1.2% for non-residents working in Detroit. 24 other Michigan cities have their own local income taxes ranging from 1% to 2.4% for residents.
Michigan uses a personal exemption of $5,900 per person (2026) rather than a standard deduction. A single filer deducts $5,900 from income before applying the 4.25% rate; married filing jointly deducts $11,800. Each dependent child or qualifying person adds another $5,900 exemption. This is much smaller than the federal standard deduction of $16,100 (single), which means Michigan taxes more of your income than the federal government does. A single filer earning $75,000 has $58,900 in federal taxable income but $69,100 in Michigan taxable income.
A 2015 Michigan law created an automatic trigger: if state revenue in a given year exceeded the rate of inflation by more than 1.425%, the income tax rate would drop by 0.1 percentage points for the following year only. In 2022, state revenues met that threshold, so the rate fell to 4.05% for tax year 2023. However, the Michigan Supreme Court ruled that the reduction applied only to tax year 2023 — not permanently. The rate returned to 4.25% for 2024 and 2025, and remains at 4.25% for 2026.
Yes. Detroit levies a city income tax of 2.4% on residents and 1.2% on non-residents who work within Detroit city limits. This is on top of Michigan's 4.25% state income tax — Detroit residents earning $75,000 pay roughly $1,800 in city tax in addition to state tax. Other major Michigan cities with local income taxes include Grand Rapids (1.5% residents), Lansing (1% residents), Flint (1% residents), and Saginaw (1.5% residents). This calculator models Michigan state tax only — add your city rate separately if applicable.
Indiana has a flat 3.05% income tax rate — significantly lower than Michigan's 4.25%. On a $75,000 salary, an Indiana resident pays roughly $800–$900 less in state income tax per year. Ohio uses a progressive system with a top rate of 3.99% and broad exemptions, and many Ohio workers pay an effective rate below Michigan's 4.25%. Both Ohio and Indiana also have county-level income taxes that can offset some of this advantage. For high earners, Michigan's flat tax can be more predictable than Ohio's graduated brackets.
Yes. The One Big Beautiful Bill (2026) exempts overtime premiums and up to $25,000 in tips from federal income tax only. Michigan still taxes overtime and tip income at the standard 4.25% state rate. Use our Overtime Tax Calculator to see the combined federal savings and remaining Michigan state tax on overtime pay.
Pre-tax 401(k) contributions reduce both your federal and Michigan taxable income. Michigan conforms to federal adjusted gross income (AGI), so pre-tax deductions that lower your federal AGI also lower your Michigan taxable income. On a $500/month 401(k) contribution, you save about $21.25/month in Michigan state tax (4.25% × $500), on top of the larger federal savings of $110–$132/month depending on your bracket. Over a year that's about $255 in Michigan state tax savings. Because Michigan's exemption is small, 401(k) contributions have an outsized proportional impact on Michigan taxable income.